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First, before 1979, the Chinese economy was a shortage economy with a demand much higher than the supply.
According to Kornai, shortage economies share several common characteristics.
Teaching posts were generally badly paid, while the shortage economy made manuscript paper at times difficult and expensive to acquire.
One banner declared, "Socialist shortage economy - no thanks."
Kornai distinguishes between several different possible actions and individual outcomes that can occur in a shortage economy.
Consumer goods were lacking in quantity in the shortage economies that resulted.
With time, the shortage economy led to scarcity of meat, coffee, tea and other ingredients of daily use.
There was declining morale, worsening economic conditions (a shortage economy), and growing stress from the Cold War.
The second employs models derived from J Kornai's theories of the shortage economy.
The exchange rate worsened distortions in the economy at all levels, resulting in a growing black market and the development of a shortage economy.
This resulted in shortage economies.
There were no funds to modernize factories, and the promised "market socialism" materialized as a shortage economy characterized by long queues and empty shelves.
The shortage economy which had evolved into a prevalent problem in other parts of the Soviet Union had in Georgia nearly disappeared.
Although there was practically no unemployment in Poland, wages were low and the shortage economy led to lack of even the most basic foodstuffs in the shops.
For example in the shortage economy, luxury goods were available from a state-run chain of shops (like Pewex) selling products only for hard to obtain foreign currency.
After the fall of the communist system and the end of shortage economy, the majority of milk bars went bankrupt as they were superseded by regular restaurants.
Since many fewer government-run shops were opened, it marked the beginning of the shortage economy, as people found it increasingly difficult to find a shop with items of everyday use.
Shortage economy (Polish: gospodarka niedoboru, Hungarian: hiánygazdaság) is a term coined by the Hungarian economist, János Kornai.
It could happen, though by definition, it only does so rarely in a shortage economy, that the consumer gets lucky and the item sought by her is available in the shop.
The food of Eastern Europe, most of which stems from a meeting of the Communist shortage economy and traditional heavy Slavic recipes, is getting mixed reviews from Americans.
At the same time, the entire Eastern Bloc continued to experience massive stagnation, consumer goods shorfalls in shortage economies, developmental stagnation and large housing quantity and quality shortfalls.
Considering the recent History of Poland (1945-1989), its shortage economy, black market and the majority of the population supported Solidarity (Polish trade union), it is unclear how the community has recovered.
The science of economics was also deeply affected, as communist ideology stressed that central planning was always superior to capitalism, and banned works like those of János Kornai on the shortage economy.
On the contrary, Mr. Lipton and Mr. Sachs say, in a shortage economy, a fall in real wages can mean the elimination of waiting lines and a rise in living standards.
Like the rest of the Eastern Bloc economies, producer goods were favored over consumer goods, causing consumer goods to be lacking in quantity and quality in the shortage economies that resulted.